Spain's fragmented parliament generating uncertainty - central bank

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MADRID, Oct 31 (Reuters) - A fragmented Spanish parliament in which the government controls fewer than a quarter of the seats is generating uncertainty over economic policy, the central bank’s governor said on Wednesday.

Socialist Prime Minister Pedro Sanchez has struggled to muster parliamentary approval for next year’s budget, and said he may compromise on plans for more ambitious spending in order to secure its passage.

Spain’s economy has grown steadily ever since it emerged from a 5-year slowdown in the latter part of 2013, expanding by over 3 percent each year from 2015-2017, but economists warn it may have passed its peak. (Reporting by Sam Edwards, writing by Isla Binnie; editing by David Stamp)